Tejas Networks Ltd (TEJASNET) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Valiant Commun.

Indus Towers

Vindhya Telelink

Optiemus Infra

Sterlite Tech.

HFCL

ADC India

GTL Infra.

ITI

Tejas Networks

Pace Digitek

Why is Tejas Networks Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Low ability to service debt as the company has a high Debt to EBITDA ratio of 12.63 times
The company has been able to generate a Return on Equity (avg) of 2.99% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -88.39%, the company declared Very Negative results in Dec 25

The company has declared negative results for the last 2 consecutive quarters
NET SALES(Q) At Rs 306.79 cr has Fallen at -88.39%
PBT LESS OI(Q) At Rs -310.41 cr has Fallen at -257.15%
PAT(Q) At Rs -196.55 cr has Fallen at -218.6%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -63.24%, its profits have fallen by -215.7%

Below par performance in long term as well as near term

Along with generating -63.24% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Tejas Networks for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tejas Networks

-63.24%

-1.40

45.31%

Sensex

7.88%

0.70

11.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

47.80%

EBIT Growth (5y)

-228.71%

EBIT to Interest (avg)

-5.93

Debt to EBITDA (avg)

7.94

Net Debt to Equity (avg)

1.17

Sales to Capital Employed (avg)

0.51

Tax Ratio

31.20%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

10.70%

ROCE (avg)

-1.43%

ROE (avg)

2.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.74

EV to EBIT

-11.42

EV to EBITDA

-21.88

EV to Capital Employed

1.34

EV to Sales

3.61

PEG Ratio

Dividend Yield

0.76%

ROCE (Latest)

-4.83%

ROE (Latest)

-12.26%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-33What is not working for the Company

NET SALES(Q)

At Rs 306.79 cr has Fallen at -88.39%

PBT LESS OI(Q)

At Rs -310.41 cr has Fallen at -257.15%

PAT(Q)

At Rs -196.55 cr has Fallen at -218.6%

ROCE(HY)

Lowest at -4.08%

DEBT-EQUITY RATIO(HY)

Highest at 1.29 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 61.26 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.24 times

Loading Valuation Snapshot...

Here's what is not working for Tejas Networks

Net Sales - Quarterly

At Rs 306.79 cr has Fallen at -88.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -310.41 cr has Fallen at -257.15%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -196.55 cr has Fallen at -218.6%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 1.29 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 61.26 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 1.24 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio